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The reverse charge arrangements in the EU

Normally, the entrepreneur who provides a service or supplies a good is the one who owes the VAT. However, the EU VAT Directive has various reverse charge mechanisms ( Articles 194 to 199ter and 202 EU VAT Directive ). The levy of VAT is then transferred to the buyer of the good or service. If the reverse charge mechanism applies, the supplier or service provider may not charge VAT. The customer must declare the VAT due and may or may not deduct it, depending on the use of the good or service. The levy of VAT is not shifted to a private individual. However, it is possible that the levy is transferred to a legal entity that is not an entrepreneur.

Source Taxence

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